Negotiators from the world’s largest economies have agreed to back South Africa’s G-20 priorities, particularly its focus on addressing the high debt levels of African nations.
On the second day of talks, marking the start of South Africa’s G-20 presidency on December 1, consensus was reached to prioritize easing debt burdens for developing countries. South Africa has placed the issue of debt sustainability as a top focus during its leadership of the Group of 20.
“We will focus on ensuring that debt sustainability for low-income countries is addressed,” said Zane Dangor, South Africa’s G-20 sherpa and director general of the foreign affairs department. He added that a key part of the discussions involved establishing a cost of capital commission aimed at addressing the challenges faced by debt-ridden developing nations. This proposal has garnered widespread support from G-20 members, not just from developing countries and the African Union, but globally.
South Africa is also advocating for a review of the G-20’s Common Framework, a debt-relief initiative launched in 2020, which has faced criticism for being too slow and politically complex. Debt restructurings under the framework have often been prolonged, frustrating both creditors and debtor nations.
Africa’s external debt has surged to over $650 billion, with debt servicing costs reaching nearly $90 billion in 2024, according to the United Nations.
In addition to debt relief, South Africa is prioritizing climate change financing during its G-20 presidency. The working groups will address issues such as strengthening disaster resilience and mobilizing finance for Africa’s just energy transition. Climate change-related damage and its financial impact are key concerns on the agenda.
